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Spatial Concentration of the Informal Small and Cottage Industry in Indonesia

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  • Aloysius Gunadi, Brata

Abstract

This paper discusses the spatial concentration of the small and cottage industry without legal entity in Indonesia. The study period is 1998-2004 or a period after economic crisis which commonly known as the ‘era reformasi’ (reformation era). By employing the Herfindahl index, this study found an increase in the spatial concentration of the informal small and cottage industry during this period. It argues that reformation tend to increase the spatial concentration of the informal small and cottage industry. Beside the economic crisis that have suffered urban and Java areas, other possible explanation on the connection between trend of the concentration and the reformation is what commonly known as the cost of formality.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 12622.

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Date of creation: 2007
Date of revision: 2008
Handle: RePEc:pra:mprapa:12622

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Keywords: spatial concentration; small and cottage industry; reformation; Indonesia;

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References

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  1. Tulus Tambunan, 2007. "Entrepreneurship Development: Smes In Indonesia," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 12(01), pages 95-118.
  2. Audretsch, David B & Keilbach, Max, 2005. "Entrepreneurship Capital - Determinants and Impact," CEPR Discussion Papers 4905, C.E.P.R. Discussion Papers.
  3. Albert Berry & Edgard Rodriguez & Henry Sandee, 2001. "Small And Medium Enterprise Dynamics In Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 37(3), pages 363-384.
  4. Parker, Simon C., 2005. "The Economics of Entrepreneurship: What We Know and What We Don't," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 1(1), pages 1-54, May.
  5. Daniel Suryadarma & Wenefrida Widyanti & Asep Suryahadi & Sudarno Sumarto, 2006. "From Access to Income : Regional and Ethnic Inequality in Indonesia," Development Economics Working Papers 22547, East Asian Bureau of Economic Research.
  6. Anna Wetterberg & Sudarno Sumarto & Lant Pritchett, 1999. "A National Snapshot of the Social Impact of Indonesia's Crisis," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 35(3), pages 145-152.
  7. Hal HILL & Takashi SHIRAISHI, 2007. "Indonesia After the Asian Crisis," Asian Economic Policy Review, Japan Center for Economic Research, vol. 2(1), pages 123-141.
  8. Friedrich Schneider & Robert Klinglmair, 2004. "Shadow Economies around the World: What Do We Know?," CESifo Working Paper Series 1167, CESifo Group Munich.
  9. Fitria Fitrani & Bert Hofman & Kai Kaiser, 2005. "Unity in diversity? The creation of new local governments in a decentralising Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 41(1), pages 57-79.
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Cited by:
  1. Khan, Rana Ejaz Ali & Khan, Tasnim & Maqsood, Muhammad Farqan, 2010. "Export potential of cottage industry: a case study of Sialkot (Pakistan)," MPRA Paper 34427, University Library of Munich, Germany.
  2. Syeda Khaleda & Yuji Murayama, 2013. "Geographic Concentration and Development Potential of Poultry Microenterprises and Value Chain: A Study Based on Suitable Sites in Gazipur, Bangladesh," Social Sciences, MDPI, Open Access Journal, vol. 2(3), pages 147-167, August.

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